GUIDE TO HS2 PROPERTY SCHEMES. London-West Midlands (Phase One)

Transcription

1 GUIDE TO HS2 PROPERTY SCHEMES London-West Midlands (Phase One) January 2015

2 Contents Introduction 3 Useful terms 4 Timeline 8 HS2 property schemes 10 Express purchase 12 Rural support zone (including the cash offer and the voluntary purchase scheme) 16 Need to sell 21 Rent back 25 Homeowner payment 27 Residents Charter and Commissioner 30 2

3 Introduction This guide summarises the property schemes available to people whose land or property may be affected by the construction or operation of the first phase of the HS2 railway, between London and the West Midlands. Statutory compensation is available to people affected by major infrastructure projects, and these measures are covered here. The government is offering further property measures, to help you to make decisions that best suit your circumstances. When applying for any HS2 property scheme, you are entitled to clear communication. Our new Residents Charter sets the standards by which we will communicate with you. We will be held to account on these standards by our new Residents Commissioner. You can read more about the charter and commissioner in this guide. We hope you find the overviews in this guide helpful. However, please do not make a decision without reading the guidance and application forms, which can be found at Our Community Relations Helpdesk is also here to help. You can contact them on (Mon-Fri, 9am-5pm), or by at hs2enquiries@hs2.org.uk. 3

4 Useful terms We have tried to make this guide as straightforward as possible, but there are a number of technical terms that we need to use these are explained below. Fuller explanations are found in the guidance documents. Term compensation code deed of receipt extended homeowner protection zone injurious affection line of route Explanation A collective term for the principles, derived from Acts of Parliament and case law, relating to compensation for compulsory acquisition. A legal document under which the cash offer will be paid, with conditions on repayment under specific circumstances (for more information, please see the rural support zone guidance at The areas that were previously safeguarded by the Secretary of State, which are no longer, but which have on a discretionary basis retained the benefit of being able to apply for express purchase or serve a blight notice until 25 June The depreciation in the value of land you retain where only part of your land holding is acquired. The proposed route of Phase One of the railway. Distances from the route are measured from the centreline on a typical track layout, this is between the two sets of tracks. 4

5 Term owner-occupier Part 1 compensation reluctant landlord Royal Assent Explanation Anyone who has the property as their principal residence or place of business. Compensation which may be claimed under the Land Compensation Act 1973 if the value of your property goes down because of the physical effects of the use of the railway. This can be claimed after the railway has been in public use for one year. A person who has been forced to let the home they own, where letting the property provides only a temporary solution, and they do not own another home. The point at which the HS2 Bill becomes an Act of Parliament. 5

6 Term safeguarding Statutory Blight Statutory Blight Notice Explanation Safeguarding is an established part of the planning system, designed to protect land which has been earmarked for major infrastructure projects from conflicting developments which might otherwise occur. From the date Safeguarding Directions are issued, Local Planning Authorities must consult with the authority which issued the Directions on planning applications they receive that fall within the safeguarded area. Safeguarding also triggers Statutory Blight. This means that property owners within the safeguarded area may be eligible to serve a Blight Notice asking the acquiring authority to buy their property in advance of any compulsory purchase. A statutory mechanism under which an owner-occupier in safeguarding can ask the government to buy their property. A formal application by the owner of a property in safeguarding, asking the government to buy the property. 6

7 Term surface safeguarding subsurface safeguarding un-blighted open market value Explanation In locations subject to surface safeguarding, Local Planning Authorities must consult on all planning applications they receive that fall within this area. For HS2, the land that is identified for surface safeguarding typically involves surface works and structures associated with the railway. In locations subject to subsurface safeguarding, applications for planning permission are generally exempt from the requirement on Local Authorities to consult, unless the proposed development would extend below ground level. For HS2, subsurface safeguarding is typically put in place when the proposed HS2 line of route is in a bored tunnel. The market value of a property as if there were no plans to develop HS2. If you would like further guidance, please call our Community Relations Helpdesk on

8 Timeline The timeline shows important timespans for property schemes, alongside indicative key points in the HS2 project. 8

9 2015 Discretionary schemes launch yrural support zone including voluntary purchase and cash offer yneed to sell 2016 Royal Assent for HS2 hybrid Bill. yhomeowner payment discretionary scheme launches 2017 to 2026 Construction 2026 Railway opens for public use 2027 Discretionary schemes close 2027 to 2033 Part 1 claims available All dates subject to Parliamentary process. 9

10 HS2 property schemes You may be eligible for a number of schemes, depending on the distance of your land or property from the line of route. The schemes are shown on the opposite page. To see maps showing which zone applies to you, please go to and search for HS2 property schemes. 10

11 PROPERTY SCHEMES AVAILABLE Phase One line of route Safeguarded area and extended homeowner protection zone Already available Right to serve a Blight Notice Express purchase* Rent back Available once the line has been open for public use for a year Part 1 compensation (where there is no land take) Rural support zone (RSZ) 120m Cash offer OR voluntary purchase** Need to sell scheme Rent back Part 1 compensation (where there is no land take) Homeowner payment zone 300m Homeowner payments*** - Zone 1: 120m to 180m 22,500 - Zone 2: 180m to 240m 15,000 - Zone 3: 240m to 300m 7,500 Need to sell scheme Rent back Part 1 compensation (where there is no land take) Beyond Need to sell scheme Rent back Part 1 compensation (where there is no land take) * Surface safeguarding only. ** *** Applies to rural areas only and does not extend to areas beyond bored tunnels. Only available after Royal Assent to the Bill. Applies to rural areas only and does not extend to areas beyond bored tunnels. 11

12 Express purchase Applies to properties in the surface safeguarding area. People living in this area that satisfy residency requirements can serve a Blight Notice on the government. If a Blight Notice is accepted, the government will buy the property at its un-blighted open market value, as if there were no plans for HS2. 12

13 Express purchase is an offer under which the government relaxes some of the rules that normally apply to Statutory Blight, making it easier for owner-occupiers to sell their property to the government. Where does express purchase apply? Express purchase applies to properties in the surface safeguarded area. Properties in this area may qualify for compensation under Statutory Blight, a process that enables you to ask the government to buy your house (see How do I apply?, on p14). Express purchase is not available in areas classified as being in subsurface safeguarding for example, properties over deep bored tunnels. If you are not sure whether your property is within the safeguarded area, please call our Community Relations Helpdesk on Am I eligible? To qualify for express purchase, you will need to show that: your property is (or was * ) within surface safeguarding (i.e. where the route is above ground); and you have a qualifying interest, which means that (1) you are an owner-occupier, and (2) you have either a freehold of the property or a lease with over three years unexpired. * see extended homeowner protection zone in useful terms on p4. 13

14 If only part of your property is in the safeguarded area, you may still be eligible. To be eligible you must have any part of your dwelling house or over 25% of the total area of your property (generally the house and garden but also including other land included in the property) within the safeguarded area. To check your eligibility, please read the full guidance available online, or call our Community Relations Helpdesk. What will I receive? If you are eligible, you can ask the government to buy your property at its un-blighted open market value that is, the value on the open market as if there were no plans for HS2. You will also receive, as per the Compensation Code: yreasonable costs of moving for example, stamp duty on a replacement property of similar value, reasonable surveyors and legal fees, and removal costs; and ya home loss payment, equal to 10% of the property s open-market value (up to 49,000), subject to meeting the qualifying criteria. How do I apply? You will need to fill in a form called a Blight Notice and send it to the government. You can find the form(s) on our website ( along with a Guide to Statutory Blight and express purchase that contains further information. We will make a decision within two months of receiving your Blight Notice. If we accept the notice, it means that we will agree to buy your property as per the Compensation Code. 14

15 You can accept our offer to purchase at any time within three years of the acceptance of your Blight Notice. For more information on renting back your property, please see rent back on p25. Do I need professional advice? If you are considering submitting a Blight Notice, we recommend that you take professional advice from a suitably qualified chartered surveyor (see Where can I get help?, below). Advisors should also read our guidance. If we agree to buy your property, you can include the reasonable cost of professional advice in your claim for additional costs. You and your advisor can find Blight Notice forms and detailed guidance online at Where can I get help? Having applied for a scheme, you will be allocated an HS2 case officer as your main point of contact. If you have any additional queries, please ring our Community Relations Helpdesk on Property specialists are available to anyone who needs advice on Statutory Blight, express purchase or rent back. The Royal Institution of Chartered Surveyors (RICS) has a helpline ( ), and will put you in touch with an RICS member near you who can provide up to 30 minutes of free consultation and advice. Useful information To see the safeguarding maps, please go to www. gov.uk/hs2 and search for HS2 property schemes. For guidance and an application form, please go to www. gov.uk/hs2 and search for HS2 express purchase. 15

16 Rural support zone The rural support zone (RSZ) is the area outside the safeguarded area and up to 120m from the centre line of the HS2 railway in rural areas. A choice of two discretionary schemes is available in the RSZ. The application process is the same for both. You do not need to choose an option until your property has been valued. 16

17 Two schemes The cash offer (CO) is designed to help people who do not want to sell their home and would prefer to stay within their community. Under the discretionary voluntary purchase scheme (VPS), owner-occupiers can ask the government to purchase their property for its full un-blighted open market value. Am I eligible? You will need to show evidence that: you have a qualifying interest, meaning: (1) you are an owner-occupier of the property; and (2) you have either a freehold of the property or a lease which has more than three years left to run; your property is wholly or partly in the RSZ (if partly in the RSZ, either your dwelling or 25% of the whole area of your land must be in the zone); and you were not aware of the proposed HS2 route when you purchased the property. What will I receive? The cash offer offers a lump-sum payment equal to 10% of the un-blighted open market value of your property (from a minimum of 30,000 to a maximum of 100,000). Under the voluntary purchase scheme, the government will buy your property for 100% of the un-blighted open market value, as assessed by two independent valuers. The government will not cover additional costs, such as legal fees or removal costs. 17

18 18 How do I apply? Step One Take time to consider your options The schemes will be open until one year after the HS2 line is open for public use over 10 years away. This gives you time to consider your circumstances and apply when the time is right for you. Step Two Complete an application form Complete the form and submit it with your supporting evidence. Please submit as much evidence as you can. Step Three HS2 Ltd processes your application We will acknowledge receipt of your application, and review it to ensure that it is complete. A case officer will write to you and will be your main point of contact throughout the process. He or she will progress your application to the next stage. Step Four Notification of valuation We will notify you that your application has been accepted or declined. If it has been accepted, the next stage is to arrange two independent valuations of your property these are to establish its un-blighted open market value. Step Five Valuations Independent chartered surveyors who are familiar with your area and have appropriate experience will be chosen from a list. You choose one; HS2 Ltd chooses the other. HS2 Ltd pays for both. If the valuations are within 10% of each other, the agreed value will be the average of the two (calculated by taking the differences between the two values as a percentage of the higher value). If they differ by more than 10%, an additional valuation will be obtained and we will take the average of the two closest valuations.

19 Step Six Offers We will write to you with a formal offer showing how much we would buy your property for, and the value of the cash offer, both based on the evidenced un-blighted value of your property. You will have one year from the offer date to choose whether to opt for voluntary purchase or the cash offer. Step Seven Choice of schemes If you choose the CO, we will make a payment equal to 10% of the value of your property. You will need to instruct a solicitor as we will need you to sign a deed of receipt in order to make the payment. We will pay up to 500 (plus VAT) towards these costs. If you choose the VPS, we will buy your house under a normal conveyancing process. You will need to instruct a solicitor at your cost. Step Eight Further valuations If you don t wish to opt for either scheme yet, there is no pressure to accept either offer. Although the offer will expire after a year, you can re-apply if you wish. However, we would expect you to contribute a fixed contribution of 1,000 to the cost of new valuations. 19

20 Useful information To see the rural support zone on maps, please go to www. gov.uk/hs2 and search for HS2 property schemes. For guidance and an application form, please go to www. gov.uk/hs2 and search for HS2 RSZ. If I accept payment, can I still apply for other schemes? Accepting the CO will prevent you from applying for the VPS at a later date. However, you can still apply for the need to sell (NTS) scheme (see p21). If you succesfully apply for NTS, the value of the CO will be deducted from the purchase price. The cash amount would be reclaimed, increased by the statutory interest rate, which is set at 0.5% below the Bank of England base rate. We will also reclaim the value of the CO if you sell to us under Statutory Blight/express purchase or any other compulsory purchase. Accepting the CO will not affect property owners ability to claim for statutory loss of value due to physical factors under Part 1 of the Land Compensation Act 1973 or under injurious affection. Do I need professional advice? The application process is designed so that it does not require a third party to act on behalf of the applicants. Having applied for a scheme, you will be allocated an HS2 case officer as your main point of contact. If you want to ask a third party to help you, you are welcome to do so. Some applicants may wish to ask a friend, relative or a professional. The application must clarify the relationship between the applicant(s) and any representative receiving correspondence. Please note that any professional fees incurred in the application process will not be reimbursed by the Department for Transport (DfT) or HS2 Ltd. 20

21 Need to sell This scheme is available to owner-occupiers who can demonstrate that they have a compelling reason to sell their property, but have been unable to do so other than at a substantially reduced price as a direct result of the announcement of the route of HS2. 21

22 Am I eligible? The need to sell scheme (NTS) is available in urban and rural areas. Applicants will be expected to submit evidence to meet all of the following five criteria: Property type applicants should demonstrate that they have a qualifying interest, meaning: (1) the property in question is owner-occupied; and (2) they have either a freehold of the property or a lease with over three years left to run. Alternatively, they may be acting as a reluctant landlord. Mortgagees or personal representatives may also be eligible please refer to the NTS guidance at Location the scheme is for properties likely to be substantially affected by HS2 s construction or operation. However, there is no fixed distance within which a property must be situated. Effort to sell the property must have been marketed without success for at least three months, with no offers within 15% of its realistic un-blighted asking price. No prior knowledge applicants must have bought their property before the initial preferred route of Phase One was announced on 11 March Alternatively, they must show why they could not have known about it for example, if the searches relating to the property purchase were undertaken before this date, but the purchase itself was completed afterwards. Compelling reason to sell evidence of a compelling reason to sell your property now, or that you would be placed under an unreasonable burden in the next three years, if you were unable to sell your property. 22

23 What will I receive? If your application is successful, the government will agree to buy your property for 100% of the un-blighted open market value. The government will not cover additional costs, such as legal fees or removal costs. How do I apply? Step One Completing the application Complete the application form and submit it with as much supporting evidence as possible. Step Two HS2 Ltd reviews your application The NTS Secretariat will acknowledge your application by or letter. If information is missing, or there is an obvious lack of evidence provided, you will be asked if you would like to provide it. In most cases, the estate agent(s) marketing the property will also be contacted. Step Three Consideration by the Panel Three professionals who are independent of HS2 Ltd and the Department for Transport will make a recommendation. Step Four Decision A senior civil servant or minister will consider the recommendation. If your application is successful, you will be notified. The Secretariat will write to you with a formal offer to buy your property. If you are unsuccessful, the NTS Secretariat will write to you to explain why. You can re-apply if there is a material change in your circumstances, or if you can provide new evidence that is relevant to the reason(s) that your application was unsuccessful. 23

24 The NTS and the exceptional hardship scheme The NTS replaces the Phase One exceptional hardship scheme (EHS). If your EHS application was received before the NTS opening date in January 2015 and has not yet been considered, it will automatically be considered under the NTS you do not need to re-apply. Do I need professional advice? The application process is designed so that it does not require a third party to act on behalf of the applicants. Having applied for a scheme, you will be allocated an HS2 case officer as your main point of contact. If you want to ask a third party to help you, you are welcome to do so. Some applicants may wish to ask a friend, relative or a professional. The application must clarify the relationship between the applicant(s) and any representative receiving correspondence. Please note that any professional fees incurred in the application process will not be reimbursed by the Department for Transport (DfT) or HS2 Ltd. For guidance and an application form, please go to and search for HS2 need to sell. 24

25 Rent back Renting back is a way of continuing to live in your home, having sold it to the government under a HS2 property scheme. All homes that the government agrees to purchase can be considered for rent back. 25

26 Am I eligible? There are two conditions: ythe costs of the property, once assessed, must make maintaining the property a reasonable use of taxpayers money; and ythe government must follow its own regulations on rented properties, ensuring they are safe and suitable for tenants. The standard for renting a property is higher than for a normal landlord or property owner. Rent back is voluntary, so you decide whether it suits your circumstances, and whether you are happy with the tenancy agreement being offered. How do I apply? When arranging to sell your property, ask your HS2 Ltd case officer to explain the options. Your property would be assessed to determine: ythe cost of any repairs, improvements or testing of service installations; and yits open-market rental value, once the necessary changes are made, compared to similar properties. What happens then? If you want to take up the rent back option, you will need to sign a tenancy agreement. For guidance, please go to and search for HS2 rent back. 26

27 Homeowner payment The homeowner payment scheme is for owneroccupiers of rural properties near the line of route. The aim is to ensure that people who live near the line of route receive an early share in the benefits of HS2. The scheme will be implemented only once the HS2 hybrid Bill, which is currently in Parliament, becomes law. We expect this to be towards the end of 2016, but will contact people living in eligible areas when the scheme is available. 27

28 What will I recieve? Eligible owner-occupiers will be able to claim from 7,500 to 22,500. yfor properties between 120m and 180m from the line of route 22,500. yfor properties between 180m and 240m from the line of route 15,000. yfor properties between 240m and 300m from the line of route 7,500. We expect that most people who receive money under this scheme would not have to pay tax on it. HS2 Ltd will contribute up to 500 (plus VAT) to legal fees for a deed of receipt. Am I eligible? You are eligible if: you have a qualifying interest, meaning: (1) you are an owner-occupier of the property; and (2) you have either a freehold of the property or a lease with over three years unexpired; your property is wholly or partly in the Homeowner Payment Zone (if partly in this zone, either your dwelling or 25% of the whole area of your land must be in the zone); and y you were an owner-occupier of the property by 9 April 2014 when the proposals for the homeowner payment were first outlined. 28

29 If your land is covered by more than one homeowner payment band, you will be eligible for the band in which your residential dwelling sits. If your dwelling is outside the bands, but your land is within them, you may be eligible for the 7,500 band. If the dwelling itself is in more than one band, you will be eligible for the higher payment. In order to qualify for the homeowner payment, agricultural units must include a dwelling that acts as a main residence. Applications will not be considered until the HS2 hybrid Bill, which is currently in Parliament, becomes law. Useful information To see the homeowner payment zones on maps, please go to www. gov.uk/hs2 and search for HS2 property schemes. If I accept payment, can I still apply for other schemes? If you claim the homeowner payment, you will need to sign a deed of receipt. If you later decide to apply for the need to sell scheme (see p21), you may do so. If your application is successful, the value of the homeowner payment will be deducted from the purchase price. The cash amount would be reclaimed, increased by the statutory interest rate, which is set at 0.5% below the Bank of England base rate. Accepting the homeowner payment will not affect property owners ability to claim for statutory compensation for loss of value due to physical factors under Part 1 or under injurious affection. 29

30 Residents Charter and Commissioner HS2 wants to ensure that we treat residents in a fair, clear, competent and reasonable manner. We have published our Residents Charter, which sets the standards by which we must communicate with people affected by HS2. We will be held to account on these standards by our new Residents Commissioner. 30

31 Our key commitments to you Clear communication We promise to: ycommunicate in the plainest, non-technical language possible; yrespond to enquiries about property schemes quickly and efficiently, and in particular to: yacknowledge all enquiries within five working days; and give a full reply within 20 working days if we cannot answer your enquiry straight away; and ypromote awareness of our property schemes so that anyone who may be eligible knows about them. Personal support We guarantee that: yhaving applied for a scheme, you will be allocated an HS2 Ltd case officer as your point of contact; and y you will be offered the opportunity to meet privately with our property specialists who can explain your options and the eligibility criteria for each of the statutory and discretionary measures. 31

32 Access for all We pledge to: yengage effectively with any minority groups or more vulnerable individuals who may need additional support, where we are made aware of such needs; and ymake information available on request in other languages, as well as in Braille, audio and large print. We will: ydisplay the Residents Commissioner s contact details on all relevant literature and on the gov.uk website so that you can write to the commissioner about any issues that affect you and that relate to HS2 Ltd s communication about the property schemes; yhelp property owners to direct their issues to the correct complaints procedure, making a clear distinction between issues with property schemes and general service complaints; and y keep this charter and our engagement with residents under review, making updates and improvements as needed. 32

33 Clear responsibilities The Residents Commissioner will: yproduce a quarterly report, published online; yoversee and monitor communication standards with regard to property measures; and yprovide a mechanism by which people s concerns can be put directly to the chairman of HS2 Ltd. The Residents Commissioner will not: yact as an arbitrator for individuals regarding the scope of property measures, eligibility, or the amount of compensation to which they may be entitled; yadvise on disputes about the validity of any blight notice counter-notice. Such disputes are dealt with by a specialist property court, known as the Upper Tribunal (Lands Chamber); yadvise on matters relating to petitioning; y replace the formal complaints procedure. People who wish to complain about the service received from HS2 Ltd should follow the formal complaints procedure; details are available at 33

34 34 Notes

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36 How can I find out more? For more information, please ring our Community Relations Helpdesk team on: or visit and search for HS2 property schemes. High Speed Two (HS2) Limited, One Canada Square, Canary Wharf, London E14 5AB CS236C